U.S. Private Sector Employment Dips Much Less Than Expected In March

01.04.2020 12:27 (UTC +0)

Reflecting a significant loss of jobs at small businesses, payroll processor ADP released a report on Wednesday showing a modest decrease in private sector employment in the U.S. in the month of March.

ADP said private sector employment fell by 27,000 jobs in March after jumping by a downwardly revised 179,000 jobs in February.

Economists had expected private sector employment to plunge by 150,000 jobs compared to the addition of 183,000 jobs originally reported for the previous month.

The drop was much smaller than expected but still reflects the first decrease in private sector employment since September of 2017.

ADP also noted its national employment report, or NER, only utilizes data through the 12th of the month, which is the same period the Labor Department uses for its more closely watched monthly jobs report.

"As such, the March NER does not fully reflect the most recent impact of COVID-19 on the employment situation, including unemployment claims reported on March 26, 2020," said Ahu Yildirmaz, co-head of the ADP Research Institute.